Section 179 May Apply to 2011 Signage Purchases
Now is the time of year when many business owners think about year end tax deductions.
- Tampa-St. Petersburg-Clearwater, FL (1888PressRelease) November 22, 2011 - While signage may not be the first thing that comes to mind when considering year-end tax deductions; it may be worth further investigation.
Section 179 of the tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software (both new and used) purchased during the tax year up to $500,000 (2011 limit). For qualifying equipment and/or software, Section 179 also allows businesses to fully depreciate any amounts above the $500,000 cut-off in the current year (new equipment only). There is a cap of $2 million for equipment purchases eligible for Section 179 treatment.
What you may not realize is that it may be possible that your signage purchases for 2011 could qualify for these beneficial tax treatments.
Creative Sign Designs does not intend this communication to provide tax advice or guidance. Please consult with your tax advisors to determine if Section 179 applies to your signage purchases.
If the sign is attached to a building, it could qualify for Section 179 expense. Since it can be separated from the building, it is considered tangible property and should be eligible. The taxpayer must have taxable income for a current year deduction.
If the sign is not attached to a building and is its own structural component, then it is a land improvement and is not eligible for deduction. However, it may eligible for bonus depreciation for new signage. 2011 bonus depreciation is 100% of the cost.
The Section 179 deduction limits and bonus deprecation rates could change in the New Year. Please consult with your tax advisor to determine if Section 179 applies to your signage purchases.
About Creative Sign Designs:
Creative Sign Designs, with national headquarters in Tampa, specializes in turnkey architectural signage solutions. Creative Sign Designs provides consultation, design, project management, fabrication, and installation services for a full line of interior, exterior and digital sign products. With more than 25 years experience providing architectural sign solutions, Creative Sign Designs is capable of successfully managing local, regional, and national projects. For more information, visit www.CreativeSignDesigns.com or call (888) 713-7620.
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